Stock Traders Buy High Volume of Home Depot Call Options (NYSE:HD)

by · The Markets Daily

The Home Depot, Inc. (NYSE:HD – Get Free Report) was the target of some unusual options trading activity on Wednesday. Stock investors bought 49,246 call options on the stock. This represents an increase of approximately 65% compared to the typical volume of 29,771 call options.

Home Depot Stock Up 1.1%

NYSE HD traded up $3.78 during trading on Wednesday, reaching $357.81. The company’s stock had a trading volume of 2,753,633 shares, compared to its average volume of 3,595,737. The stock has a market capitalization of $356.20 billion, a PE ratio of 24.39, a PEG ratio of 6.30 and a beta of 1.06. The business has a 50-day moving average price of $376.35 and a 200-day moving average price of $380.30. The company has a current ratio of 1.05, a quick ratio of 0.29 and a debt-to-equity ratio of 3.82. Home Depot has a 1-year low of $326.31 and a 1-year high of $436.36.

Home Depot (NYSE:HD – Get Free Report) last announced its quarterly earnings results on Tuesday, November 18th. The home improvement retailer reported $3.74 earnings per share for the quarter, missing analysts’ consensus estimates of $3.83 by ($0.09). Home Depot had a return on equity of 160.74% and a net margin of 8.77%.The company had revenue of $41.35 billion during the quarter, compared to analyst estimates of $41.06 billion. During the same period in the prior year, the firm earned $3.78 EPS. Home Depot’s quarterly revenue was up 2.8% on a year-over-year basis. Home Depot has set its FY 2025 guidance at 14.478-14.478 EPS. On average, research analysts forecast that Home Depot will post 15.13 earnings per share for the current fiscal year.

Home Depot Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 18th. Investors of record on Thursday, December 4th will be issued a dividend of $2.30 per share. This represents a $9.20 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Thursday, December 4th. Home Depot’s dividend payout ratio is currently 62.71%.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on HD shares. Robert W. Baird lowered their price target on Home Depot from $450.00 to $415.00 and set an “outperform” rating on the stock in a report on Wednesday, November 19th. Zacks Research lowered Home Depot from a “hold” rating to a “strong sell” rating in a research report on Thursday, November 27th. The Goldman Sachs Group dropped their target price on Home Depot from $444.00 to $406.00 and set a “buy” rating on the stock in a report on Wednesday, November 19th. DZ Bank reissued a “sell” rating on shares of Home Depot in a research report on Tuesday, November 18th. Finally, Evercore ISI decreased their price target on shares of Home Depot from $450.00 to $425.00 and set an “outperform” rating for the company in a report on Wednesday, November 19th. Twenty-one analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $403.93.

Read Our Latest Stock Report on Home Depot

Insider Activity at Home Depot

In related news, EVP William D. Bastek sold 2,303 shares of the firm’s stock in a transaction that occurred on Friday, September 12th. The shares were sold at an average price of $423.12, for a total value of $974,445.36. Following the completion of the transaction, the executive vice president owned 24,235 shares of the company’s stock, valued at approximately $10,254,313.20. This trade represents a 8.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Allworth Financial LP lifted its position in shares of Home Depot by 1.9% during the 3rd quarter. Allworth Financial LP now owns 204,834 shares of the home improvement retailer’s stock worth $82,997,000 after purchasing an additional 3,831 shares during the last quarter. Swiss Life Asset Management Ltd raised its stake in Home Depot by 2.1% during the 3rd quarter. Swiss Life Asset Management Ltd now owns 334,430 shares of the home improvement retailer’s stock valued at $135,508,000 after purchasing an additional 6,722 shares during the last quarter. Stillwater Wealth Management Group bought a new stake in Home Depot in the 3rd quarter valued at $3,502,000. Payne Capital Management LLC grew its position in Home Depot by 11.8% in the 3rd quarter. Payne Capital Management LLC now owns 1,535 shares of the home improvement retailer’s stock worth $622,000 after purchasing an additional 162 shares during the last quarter. Finally, Investment Research Partners LLC acquired a new position in shares of Home Depot during the third quarter valued at about $407,000. Institutional investors and hedge funds own 70.86% of the company’s stock.

About Home Depot

(Get Free Report)

The Home Depot, Inc operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows.

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